(Bloomberg) — The Philippines’ stronger defense relations with the United States can help unlock business deals for the Southeast Asian nation as Washington and its allies seek alternatives to China, according to Manila’s envoy to the US.
“The basis for better economic ties with the US now is our relationship on the defense side,” which Ambassador Jose Manuel Romualdez described as “clearly balanced” under President Ferdinand Marcos Jr. compared to periods in the past when the US may have taken the relationship for granted.
“If we are able to get a large portion or even at least a slice of that American pie, that will be significant for us,” Romualdez said in a Zoom interview on Monday, referring to investments. “I’ve not seen this enthusiasm for the Philippines from US investors. It’s a consequence of our enhanced defense ties,” said the envoy who’s a cousin of Marcos.
At stake for the US’ oldest ally in the Indo-Pacific region is its domestic security and sovereignty amid China’s encroachment over disputed waters and as tensions over neighboring Taiwan rise. The Philippines, one of Asia’s fastest-growing economies, is also competing with neighbors for a share of the billions of dollars of chips investments that may spread out from China and Taiwan.
The US views the Philippines as a key part of its strategy to prevent China from pursuing military actions particularly in Taiwan, according to Romualdez. The chances of a dangerous encounter in Taiwan “isn’t that high, but it can happen,” he said.
US companies are particularly looking to tap the Philippines to produce semiconductors, Romualdez said. Manila is seen by American firms as a place that they can “trust” with their operations and expansion, he said, following President Joe Biden’s enactment of a law to boost America’s capacity and rival China in the sector.
The US will likely dispatch a high-level trade and investment mission to the Philippines by yearend, according to Romualdez.
With neighbors like Vietnam, Thailand and Indonesia also seeking investments, the Philippines will have to ease foreign ownership restrictions and provide perks to woo US businesses, the ambassador said.
The Philippine envoy lashed out against critics of Marcos’s foreign policy especially against the backdrop of elevated tensions over the South China Sea that has prevented Filipino fishermen from venturing out to the sea.
“Some people may have the wrong notion that the President is siding with one side to the detriment of the other,” Romualdez said of Marcos’s foreign policy. “Not true at all. He is trying his best to balance our relationship between the United States and China.”
At the same time, the Philippines can’t just sit around and look while Chinese vessels intrude into its territories, he said, days after the Philippines reported fresh encounters and “swarming” of Chinese vessels. China’s recent actions near an oil and gas-rich area in contested waters may be a prelude to occupation, a Philippine Coast Guard official said over the weekend. Beijing has said its activities were legitimate.
As for Taiwan, the Philippines is “part of that deterrence posture that the US would like to have with China,” Romualdez said. “It’s very important not only for the US but also for all like-minded allies in the Indo-Pacific region that the Philippines plays a role.”
Marcos’s government earlier this year granted the US expanded access to military sites, including those near Taiwan, as part of efforts to strengthen a longstanding alliance that was strained during the term of former President Rodrigo Duterte.
The US — which has allocated more than more than $100 million to upgrade military sites — is committed to developing these areas, Romualdez said. It’s also working on maritime patrols with the Philippines in the South China Sea hopefully within the year and will also help Manila buy hardware to strengthen its military, he said.
“The foreign policy that we have right now in my view is the right move,” Romualdez said. “We’re not looking for trouble; we are looking for business. Now, who is the one that’s making trouble?”
–With assistance from Cecilia Yap and Manolo Serapio Jr..
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
